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> Oil is priced in dollars, and countries borrow in dollars, because dollars reign supreme. I think you took two steps. It wasn’t because of the dollar - it w
by MR4D 6y ago
> Oil is priced in dollars, and countries borrow in dollars, because dollars reign supreme.
I think you took two steps. It wasn’t because of the dollar - it was because of the us military. At the end of WWII, there was not real alternative except the British pound, but they couldn’t back it up with military might.
Adding to the leverage was the gift of a DC3 to The Saudi King, whereas the Brits gifted a Rolls Royce. The King liked to fly and could sit in either seat. In the Rolls, he wanted to ride up front, but would have to sit at the unclean hand of the driver.
Sorry to nitpick your nitpick, but these things were more important (and somewhat causal) to a strong dollar.
- JumpCrisscross 6y ago> It wasn’t because of the dollar - it was because of the us military. At the end of WWII, there was not real alternative except the British pound, but they couldn’t back it up with military might. Totally agree. That is the origin of the supremacy. The U.S. was the only advanced economy with infrastructure intact. That led to the Bretton Woods system, which lay the ground for the post-BW order. Oil came after all that.
- MR4D 6y agoI would argue that oil came at the same time. Harold Ickes was trying to make sure we had enough while the war was still raging. [0]. [0] - https://www.e-education.psu.edu/egee120/node/254 https://www.e-education.psu.edu/egee120/node/254
- Lammy 6y agoThe USA and Saudis already had a deep relationship by the end of WW2. Faisal was even here in the Bay Area in 1943 to see the shipyards building the fleet of tankers that carried Saudi oil and won us the war.